| Market Profile | Program Benefits | Program Contacts |
More ABA-Endorsed Solutions by Promontory
- CDARS (Certificate of Deposit Account Registry Service
- IND (Insured Network Deposits)
Promontory Interfinancial Network, LLC ("Promontory") provides smart, innovative solutions that enhance the profitability of banks and help them to compete. By using Promontory's ICS®, CDARS®, and IND® services, financial institutions can build loyal, large-dollar relationships, manage their liquidity positions, and purchase funding without collateralization or stock purchase requirements.
With ICS, the Insured Cash Sweep® service, Promontory Network members can offer their customers a product that provides access to multi-million-dollar FDIC insurance and earns interest on funds placed into demand deposit accounts (when using the ICS demand option), money market deposit accounts (when using the ICS savings option), or both. Customers no longer have to choose among peace of mind, earning a return, and access to funds.
Formally launched in September 2011, ICS has been well-received. Nearly 800 banks have signed up to offer the service. And as of September 30, 2012, outstandings placed with member banks total in the billions; per-customer ICS balances average over $1.9 million.
Not only can ICS be used to attract lucrative, large-dollar relationships, but for banks flush with cash, it can replace higher-cost funding from existing deposits (e.g., repo sweeps and letters of credit). ICS can also reduce collateralization requirements. Banks that replace existing collateralized deposits with ICS deposits can generate additional revenue by repurposing collateral into higher-earning assets while also improving asset liquidity, reducing collateral tracking burdens and associated costs, and lowering the risk of shortfall due to collateral-value deterioration. ICS can also help participating banks to compete on dimensions other than price – and, in particular, feature access to significantly higher levels of FDIC coverage than banks of any size can offer on their own.
- Offers reciprocal funding
- Gives member banks the flexibility to set the rates they offer
- Does not require member banks to manually track customer withdrawals (ICS savings option)
- Does not require member banks to track collateral values on an ongoing basis
All of this makes ICS more convenient than other deposit sweep services. With the Insured Cash Sweep service, Promontory Network members can offer their customers a return, peace of mind, and flexibility.
Use of the ICS service is subject to the terms, conditions, and disclosures set forth in the ICS agreements, including the ICS Participating Institution Agreement and the ICS Deposit Placement Agreement. Limits and customer eligibility criteria apply. ICS program withdrawals are limited to six per month when using the ICS savings option. CDARS, Insured Cash Sweep, and IND are registered service marks, and ICS is a service mark, of Promontory Interfinancial Network, LLC.
Promontory Interfinancial Network, LLC
1515 North Courthouse Road, Suite 1200
Arlington, VA 22201
Contact: Steve Kinner
Tel: (703) 292-3445
Toll Free: (866) 776-6426
Lisa Gold Schier Tel: (202) 663-5098